Deputies Chamber approves the draft of the Federal Law for the Regulation of Cannabis. Pending approval by the Senate Chamber

Following the acknowledgment by the Mexican Supreme Court of Justice of the right to the free development of personality, on March 10, the Deputies Chamber approved in general the draft of the Federal Law for the Regulation of Cannabis with 316 votes in favor, 129 against and 23 abstentions. This approval implied modifications to the draft that had been approved last November by the Senate Chamber.

Therefore, in order to be considered as approved, the reform bill must pass again through the Senate Chamber before being promulgated by the Federal Executive, prior to its publication in the Official Federal Gazette.

If the Law is approved by the Senate Chamber in the terms approved by Deputies Chamber, the recreational use of cannabis will be legal in Mexico. In addition, among the main aspects regulated by the law will be the following:

a) Only persons over 18 will be able to use cannabis and its derivatives through its cultivation, possession, and consumption. However, the State must promote campaigns that inhibit consumption by individuals under 25;

b) For the consumption of cannabis there will be, fundamentally, three ways:

• Self-cultivation. A maximum of 6 psychoactive cannabis plants per person may be kept in the owner’s home. If more than one consumer lives in the house, the amount of cannabis plants, as well as the product of the plantation harvest, may not exceed of 8. The permits required for self-consumption are expected to be valid for between 1 and 5 years.
• It should be noted that, until today, prior to the approval of the relevant reform, it was only possible to obtain a permit for adult use of cannabis, which includes the acquisition of seeds, harvesting, transformation and transportation through an amparo trial that requires the initial filing of an application before the Federal Commission for the Protection against Sanitary Risks (COFEPRIS).
• Consumer associations. They may be formed by between 2 and 20 members over 18 years old with a maximum of four plants per member and less than 50 plants per group.
• Points of sale. Authorized only for persons over 18.

c) Possession for personal recreational use of up to 28 grams of cannabis will be legal.

Prior to the reform, only the possession of 5 grams was allowed. After the reform, those who have between 28 and 200 grams will be subject to a fine of up to USD$500 and those who carry more than that amount without the pertinent authorization will be criminally sanctioned.

d) The National Commission against Addictions (CONADIC), under the Ministry of Health, will be the entity authorized to regulate the use of cannabis, i.e., the bill approved by Deputies Chamber did not include the creation of the Mexican Institute for the Regulation and Control of Cannabis.

CONADIC would be responsible for supervising the production process, including the sowing and harvesting of cannabis and will be in charge of granting permits for the creation of consumer associations.

e) Unlike what had originally been approved by the Senators, under the new ruling approved by the House of Deputies Chamber, vertical integration will be possible, that is, a single company will be able to participate in the different stages of the production process, in its distribution and commercialization. It is foreseen that production licenses will have a term of between 1 and 5 years.

f) The companies that commercialize cannabis for recreational use must comply with strict labeling, with the legend “only for sale in Mexico”, have hermetically sealed and childproof packaging and put warnings on the harmful effects on health and prohibition of its consumption by minors under 18.

If the law is enacted, Mexico will become the third country in the American continent to legalize marijuana, together with Canada and Uruguay. Likewise, the approval of this Law would imply certain additions and modifications to the General Health Law and the Federal Criminal Code.

We will keep you updated on the approval of this Law considering that on April 30, 2021 the third extension granted by the Supreme Court of Justice of the Nation on December 10, 2020 for the Mexican Congress to approve the legislation in this matter will expire.

If you wish to know more details of the above mentioned or the comments that the different sectors involved have issued regarding the approved bill, please do not hesitate to contact us.

Yours sincerely,

Cannizzo, Ortiz y Asociados, S.C.